Every employer must take out and keep up to date a workers compensation insurance policy covering all their employees and certain other persons brought within workers compensation benefits by the legislation.

The penalties are severe for failure to do so, and include a maximum of 500 penalty units (currently $55,000), or imprisonment for six months, or both. WorkCover can recover in Court a sum that is twice the amount of the premium that was payable by the employer; and WorkCover may issue a Notice requiring reimbursement from an employer of the payments of workers compensation benefits WorkCover has made to the injured worker because the employer did not have insurance.

In addition, as an employer you have certain legal obligations. You must:

• keep correct records of wages paid to employees, and the trade occupation or calling of each worker, (and all matters relevant to the calculation of insurance premium) for a period of at least seven years from the date of the last entry made in the record;
• keep a copy of your workers compensation policy for at least seven years from its expiry, or until all employees that the policy was in force for have left, whichever is the later;
• have a Register of Injuries book at each of your workplaces. It must be readily accessible to any worker who wishes to record details of their injury. It is prudent to keep these books permanently;
• have an approved summary of the workers compensation legislation displayed in a conspicuous place at each of your workplaces where it can be conveniently read by a person employed there, and provide information about the Occupational Health and Safety Act.

The topic of Mandatory Return-to-Work Programs is discussed in detail elsewhere on the website, however, in general, every employer must:

• establish a return-to-work program with respect to policies and procedures for the rehabilitation (and, if necessary, vocational re-education) of any injured workers. A return-to-work program with your workers compensation insurer’s injury management program. The insurer will provide details of its injury management program upon request. It must comply with WorkCover guidelines and directions;
• if you are a large employer (ie with a basic tariff premium of more than $50,000 per year), you must display a return-to-work program at each of your workplaces and must appoint a return-to-work coordinator and ensure that the coordinator undertakes (or has) the WorkCover approved training;
• if you are a small employer (ie with a basic tariff premium of $50,000 per year or less), and choose not to display the return-to-work program, you must have satisfactory arrangements for all workers to have access to it. Give a copy of the return-to-work program to any worker who requests it and to any injured worker that makes a claim for compensation. A small employer can request and use a standard return-to-work program prepared by WorkCover.

Other legal responsibilities for insurance under workers compensation legislation are discussed elsewhere on the website. These responsibilities include notifying your insurer when an injury has occurred, providing suitable employment to the injured worker and furnishing the insurer with certain documents.

These and other issues are also addressed in the Workplace Injury Management section of our website, under Frequently Asked Questions.

Penalties

• Failing to keep a correct record of wages paid to an employee and the trade, occupation or calling of each employee, (and all matters relevant to the calculation of insurance premium) for at least seven years a maximum penalty of 500 penalty units (currently $55,000).
• Failing to keep a workers compensation policy for a period of seven years from its expiry, or until all employees that it was in force for have left (whichever is the later) a maximum penalty of 50 penalty units (currently $5500).
• Not having a Register of Injuries book at every workplace that is readily accessible by workers a maximum penalty of 50 penalty units (currently $5500).
• Not posting an approved summary of the workers compensation legislation in a conspicuous place in each workplace so it can be conveniently read by any person employed there a maximum penalty of 20 penalty units (currently $2200) plus in any claim for workers compensation benefits by an injured worker, the employer cannot rely on the defence that the injured worker did not give notice of their injury as soon as possible. (There are other exceptions in respect of that defence).

The penalties that relate to Mandatory Return-to-Work Programs are set out in detail under that heading elsewhere on the website. In general they concern:

• Failing to establish a return-to-work program.
• If a large employer for not having a return-to-work coordinator and for not displaying the return-to-work program;
• If a small employer for not displaying the return-to-work program and for not having alternative arrangements for its access by, or distribution to, your employees.